Fiscal Sustainability and Its Implications for Economic Growth in Egypt
An Empirical Analysis
Bibliographic Data
| ID | 16911477 |
|---|---|
| Authors | Bayan Mohamad Alshaib (0000-0002-9876-998X, Damascus University), Abdullah Mohammad Ghazi Al khatib (0000-0002-1352-2348, Damascus University), Alina Cristina Nuţă (0000-0003-3248-644X, Danubius International University, corresponding author), Mohamad Hamra (Damascus University), Pradeep Mishra (0009-0004-8090-5906, Jawaharlal Nehru Krishi Vishwa Vidyalaya), Rajani Gautam (Damascus University), Sarfraz Hussain (0000-0002-2585-1122, Universiti Putra Malaysia), Cristina Gabriela Zamfir ("Dunarea de Jos" University of Galati) |
| Year | 2023 |
| Volume | 13 |
| Issue | 4 |
| Publication date | 2023-10-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | SAGE Open (JOURNAL) |
| Journal identifiers | ISSN: 2158-2440 • E-ISSN: 2158-2440 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/21582440231215983 |
| OpenAlex | W4390202687 |
| Language | EN |
| Citations received | 1 |
| References cited | 64 |
This study examines the association between fiscal sustainability indicators and Egypt’s economic growth from 1980 to 2018. Fiscal sustainability refers to a government’s ability to generate sufficient revenue to cover its costs and debt obligations in the long run without excessive borrowing or money creation. Egypt’s economic growth has slowed, raising questions about fiscal sustainability. This study aimed to analyze the dynamic relationship between fiscal sustainability indicators (government revenue, expenditure, external debt) and economic growth in Egypt. The autoregressive distributed lag (ARDL) bounds testing approach and unrestricted error correction model were applied to annual data from 1980 to 2018. A dynamic link was found between fiscal sustainability indicators and economic growth. Government expenditure and external debt significantly impacted economic expansion in the long term, while government revenue did not. Fiscal sustainability, measured by growth in total government expenses, external debt obligations, and revenue, significantly influences Egypt’s economic growth. Prudent fiscal management is crucial for sustained economic development. Policymakers should focus on controlling government spending, limiting external debt, and improving revenue generation to promote long-term economic growth in Egypt. Fiscal sustainability must balance critical investments in public services. Carefully managing fiscal deficits is key to unleashing Egypt’s economic potential. This study provides valuable insights into the connection between fiscal policy and economic growth in Egypt, informing policymakers’ decisions
Debt · Economic policy · Economics · Fiscal adjustment · Fiscal imbalance · Fiscal policy · Fiscal sustainability · Fiscal union · Government revenue · Government spending · Macroeconomics · Market economy · Monetary economics · Public economics · Revenue · Sustainability · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact · Finance
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| Citations per year | 1 |
|---|---|
| Citation span | 2026 - 2026 (1) |
| Highly cited | No |